French construction market: recent forecast for this year is predicting a growth between 3% to 5%


French construction market experienced strong growth of 4.8% in 2017, followed by a slower rate of 3.1% in 2018. Recent forecast for this year is predicting a growth between 3% to 5%.

Within an overall trend of growth, there are differences depending on the segments of the industry.

The housing construction activity overall is expected to remain more or less stable with a possible change of 0.2%, while repair and maintenance activity forecasted to remain positive and showing a 0.3% increase.

The non-residential activity growth is expected to accelerate, with an increase of 6.4%. The impact of growing e-commerce is changing the retail sector, which saw permits fall by 22.5% in 2018, and the construction of retail stores is expected to decline by 9.5% in 2019. The administrative building projects will probably also remain in a slump. The other market segments should remain strong in 2019. Industrial buildings should see a rise in 2019, by almost 20%, while the warehouses and the offices should increase by additional 35% and 1% respectively.

Finally, activity in the French public works sector is expected to continue to rise in 2019, at a rate of 10%. Local government spending, which accounts for 41% of overall public output, will be one of the main growth drivers. In addition, major infrastructure projects will continue to boost activity, including the Greater Paris project, the French ultra-high-speed broadband plan and the French motorway plan.

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